Business was disrupted in parts of Nairobi’s Central Business District on Friday as hundreds of traders protesters new customs valuation rules introduced by the Kenya Revenue Authority (KRA).

The traders gathered outside the Kenya National Archives along Tom Mboya Street before marching towards Times Tower.

They carried banners, blew vuvuzelas and waved Kenyan flags during the demonstration.

The protest brought together traders from areas including Kamukuji, Gikomba and Nyamakima.

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Traders Oppose New Customs benchmark

The demonstrations follow the introduction of a revised customs valuation benchmark for consolidated cargo.

Under the new guidelines, the minimum valuation for a 40-foot container of consolidated general cargo increased from Ksh 2.5 million to Ksh 3.2 million.

This is an increase of Ksh 700,000, or 28%.

Many small-scale importers share container space to bring in clothes, electronics and household goods, mainly from China.

They say the higher valuation will reduce their already small profit margins.

Some traders also fear they will be forced to increase retail prices.

“If they add the Ksh 700,000, there is no profit we will make,” one Kamukunji trader said.

Several shops in the CBD remained closed during the morning.

Some traders shut their businesses over security concerns, while others closed in solidarity with the protesters.

KRA Explains New Rules

KRA said the Ksh 3.2 million figure is a minimum reference point used for simplified customs clearance and risk management.

The authority said it is not a flat tax imposed on every shipment.

KRA added that traders can de-consolidate their cargo and pay duties based on actual itemized declarations.

However, traders say this option is difficult for small importers operating with limited capital.

Business leaders and trade associations have called for talks between the government and traders.

They want the dispute resolved quickly to avoid further disruption to businesses in the capital.